Consumer Index sees trend reversal ahead of Budget; M&M, ITC near breakout

Majority of stocks in Nifty Consumer Index on Wednesday saw a trend reversal, as the index continues to defend the key support since last four sessions. Shares of Trent, Page Industries and Havells India were up 2 per cent, respectively. 

 

So far, the Nifty Consumer Index has tumbled 8 per cent from the all-time high recorded in the last September and is now holding ground near the key support of 200-day moving average (DMA) placed at 7,409-mark. The resilience in the past four sessions reveals the index is not letting bears to violate the foremost average. 

 

If the moving average continues to bolster the index, the reversal could see most of the consumer index stocks performing better even before the market participants recognise it. Stocks like Mahindra & Mahindra, Britannia Industries, Godrej Consumer Products, Maruti Suzuki, DLF, Bharti Airtel, United Spirits and Tata power can lend quick upside from a short-to-medium term perspective. 

 

Stocks such as ITC, DLF, Nestle India, Hindustan Unilever, Britannia and Mahindra & Mahindra are trading on the higher end of the bull-run and any boost from the index could propel these stocks into the next leg of up move. 

 

Among sluggish stocks, Colgate Palmolive (India), Hero MotoCorp, Marico and Tata Consumer Products could revive their trend amid the rebound in the broad index. 

 

While stocks like Asian Paints, Jubliant Foodworks, Info Edge (India), Page Industries and voltas are not unveiling much excitement on charts, a positive reversal in the index could slow down the decline of these sluggish stocks. 

 

Here are the technical supports and resistances of Consumer Index stocks:-
 

Source: spidersoftwareindia

 

 

Source: spidersoftwareindia